Q1. Given the graph of an economy with 3 different price levels, i.e., (Case 1) world price + higher tax, (Case 2) world price + tax, (Case 3) world price, write the answers for the questions below. Note: The tax is collected by the domestic government. S A world price + higher tax : Case 1 B D world price + tax :Case 2 E HK world price (free trade, no tax) :Case 3 MN O PR D Q1 Q2 Q3 Q4 Q5 Q E) What is the tax collection of the government in the world pricethigher tax (Case 1): F) What is the overall world price + higher tax (Case 1): Explanation for F (loss or gain) when the price moves from world price (Case 3) to %24

Q1. Given the graph of an economy with 3 different price levels, i.e., (Case 1) world price + higher tax, (Case 2) world price + tax, (Case 3) world price, write the answers for the questions below. Note: The tax is collected by the domestic government. S A world price + higher tax : Case 1 B D world price + tax :Case 2 E HK world price (free trade, no tax) :Case 3 MN O PR D Q1 Q2 Q3 Q4 Q5 Q E) What is the tax collection of the government in the world pricethigher tax (Case 1): F) What is the overall world price + higher tax (Case 1): Explanation for F (loss or gain) when the price moves from world price (Case 3) to %24

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter3: Scarcity, Trade-offs, And Production Possibilities

Section: Chapter Questions

Problem 13P

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